The Baby FTC Act is a legislation implemented in certain states, which prohibits companies from engaging in dishonest or unfair practices during the sale of their products. It serves as a guideline for businesses on how they should treat their customers. Similar to the rules we have in school to ensure fairness, this law ensures that companies treat their customers fairly.
The Baby FTC Act is a state law that aims to prevent businesses from participating in deceptive or unfair trade practices, similar to the Federal Trade Commission Act. An instance of a deceptive trade practice that would be forbidden under the Baby FTC Act is when a company falsely advertises the benefits of their product. For example, if a company claims that their weight loss supplement can help individuals lose 10 pounds in a week without any exercise or dietary changes, this would be considered deceptive. On the other hand, an unfair trade practice that would be prohibited under the Baby FTC Act is when a company utilises aggressive or misleading sales tactics to pressure consumers into purchasing their products. For instance, if a door-to-door salesperson uses high-pressure tactics to persuade an elderly person to buy an expensive vacuum cleaner that they do not need, this would be considered unfair. The purpose of the Baby FTC Act is to safeguard consumers from businesses that engage in deceptive or unfair practices. The provided examples demonstrate how companies may violate this law by making false claims or employing manipulative sales tactics. By prohibiting these practices, the Baby FTC Act ensures that consumers can make well-informed decisions and are not exploited by unscrupulous businesses.
The Baby FTC Act refers to the Children’s Online Privacy Protection Act (COPPA), a federal law in the United States that regulates the online collection of personal information from children under the age of 13.
The Baby FTC Act applies to operators of commercial websites and online services that are directed towards children under 13 years old, or that have actual knowledge of collecting personal information from children under 13.
Personal information under the Baby FTC Act includes a child’s name, address, email address, telephone number, social security number, geolocation information, photos, videos, and any other information that can be used to identify a child.
Operators must provide clear and conspicuous notice of their information practices, obtain verifiable parental consent before collecting personal information from children, give parents the option to review and delete their child’s information, and maintain reasonable security measures to protect the collected information.
Operators who fail to comply with the Baby FTC Act can face civil penalties of up to $43,280 per violation. Additionally, the Federal Trade Commission (FTC) can bring enforcement actions against non-compliant operators.
Yes, there are a few exceptions to the Baby FTC Act. For example, it does not apply to non-profit organisations, schools, or government entities. It also does not apply to operators who collect personal information for the sole purpose of responding to a one-time request from a child.
Operators are prohibited from using targeted advertising on children under 13 without obtaining verifiable parental consent. However, contextual advertising, which is based on the content of the website or service, is allowed.
Operators can obtain verifiable parental consent through various methods, such as requiring a signed consent form, using a credit card or other payment system, or verifying a parent’s identity through video chat or government-issued identification.
Operators should immediately delete the personal information collected from the child and take steps to ensure it is not used or disclosed. They should also notify the child’s parent or guardian and obtain their consent if they wish to continue collecting the child’s information.
Yes, parents can file lawsuits against operators for violations of the Baby FTC Act. They can seek actual damages, statutory damages, and attorney’s fees. The FTC can also bring enforcement actions on behalf of parents.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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